Business Angels: What We Should Know

Although business angels have existed in one form or another for centuries, thorough academic research on them wasn’t conducted until Seymour and Wetzel’s seminal study in 1981. Since then, researchers have been busy filling what became apparent was a serious gap in the knowledge of business angels’ backgrounds, investment interests, and behavioral patterns. This essay will first examine what is commonly known about angel investors, before proceeding to identify knowledge gaps in the literature. By appreciating what we know and what we don’t know about angel investors, it will then be possible to explore what it is that entrepreneurs seeking financing should know.

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